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2022 Supreme(Online)(Kar) 35832

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 12TH DAY OF DECEMBER, 2022

BEFORE

THE HON'BLE MR. JUSTICE M. NAGAPRASANNA

WRIT PETITION No.23769 OF 2022 (GM - KIADB)

BETWEEN:

DHRUTHI INFRA PROJECTS LTD.,

NO. 120, 8B9 EPIP ZONE,

WHITEFIELD, BENGALURU 3 560 066,

(REPRESENTED BY ITS AUTHORISED

SIGNATORY/DIRECTOR)

MR. KARRU KOTESWARA RAO)

PUBLIC LIMITED COMPANY REGISTERED

UNDER COMPANIES ACT.

... PETITIONER

(BY SRI A.S.PONNANNA, SR.ADVOCATE A/W

SRI AJAY J.NANDALIKE, ADVOCATE)

AND:

1 .

STATE SINGLE WINDOW CLEARANCE

COMMITTEE REPRESENTED BY ITS

NODAL AGENCY KARNATAKA UDYOG MITRA

REPRESENTED BY IT9S PRINCIPAL SECRETARY

COMMERCE AND INDUSTRIES DEPARTMENT,

VIKASA SOUDHA,

BENGALURU.

2 .

KARNATAKA INDUSTRIAL AREA DEVELOPMENT BOARD

4TH AND 5TH EAST WING,

5TH FLOOR, KHANIJA BHAVAN,

RACE COURSE ROAD,

2

BENGALURU 3 560 001.

REPRESENTED BY IT9S CEO & EM

3 .

M/S. PRANITH HOLDINGS

NO. 7/30, 2ND MAIN ROAD,

DOMLUR LAYOUT,

BENGALURU 3 560 071.

REPRESENTED BY IT9S PARTNER

MRS.AKSHATHA RAJU.

... RESPONDENTS

(BY SRI N.KUMAR, AGA FOR R1;

SRI VIJAY KUMAR A.PATIL, ADVOCATE FOR R2)

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE

CONSTITUTION

OF

INDIA

PRAYING

TO

DIRECT

THE

RESPONDENT-2, TO ISSUE A CONFIRMATION

LETTER AND

POSSESSION LETTER WITHOUT INSISTING FOR PAYMENT OF ANY

ADDITIONAL AMOUNT INCLUDING INTEREST IN TERMS OF

ORIGINAL ALLOTMENT LETTER IN ANNEXURE-D AND ETC.,

THIS WRIT PETITION HAVING BEEN HEARD AND RESERVED

FOR ORDERS ON 05.12.2022, COMING ON FOR PRONOUNCEMENT

THIS DAY, THE COURT MADE THE FOLLOWING:-

The petitioner is before this Court calling in question

termination of allotment dated 30-04-2022 issued by the 2nd

respondent - Karnataka Industrial Areas Development Board

(8Board9 for short) and seeking a consequential direction by

issuance of a writ in the nature of mandamus to issue confirmation

and possession letter without insisting upon any additional payment

or interest.

3

2. Heard Sri A.S.Ponnanna, learned senior counsel appearing

for the petitioner, Sri N.Kumar, learned Additional Government

Advocate appearing for respondent No.1 and Sri Vijay Kumar

A.Patil, learned counsel appearing for respondent No.2.

3. Brief facts that lead the petitioner to this Court in the

subject writ petition, as borne out from the pleadings, are as

follows:-

The petitioner/Dhruthi Infra Projects Limited which later

became DIPL IT Hub Private Limited (8the Company9 for short) is a

Company represented by its Director. The Company generating

interest for developing certain business applies before the State

Level Single Window Clearance Committee (8the Committee9 for

short) for the purpose of allotment of a plot at the hands of the

Board. An application comes to be filed on 20-01-2017 in this

regard. It appears that the Committee gave its principle approval to

the investment project projected by the petitioner for establishment

of an industry - <Software Development Centre IT/ITES with

supporting infrastructure=. Pursuant to clearance of the project by

the Committee, an application comes to be filed before the Board

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seeking allotment in tune with what the Committee had approved.

The petitioner deposited a sum of Rs.6,00,50,000/- on 27-04-2017

and certain amounts subsequently on 25-05-2017 and 31-05-2017,

in toto the petitioner claims to have deposited Rs.7,50,50,000/-.

The total cost of the project qua allotment was Rs.25/- crores. The

petitioner was in due of Rs.17.5 crores as he had deposited Rs.7.5/-

crores. The Board issues an allotment letter on 06-06-2017 after

receipt of Rs.7.5 crores. The allotment letter had directed on

failure of the petitioner to take possession of the land within 30

days after making complete payment, the allotment would result in

cancellation and EMD being forfeited.

4.

The

petitioner

did

not

comply

with

the

conditions/directions. Several notices were issued to the petitioner

seeking payment to be made failing which, the condition that was in

the allotment letter would be exercised. The petitioner did not come

forward to make the payment. On 24-09-2021 the petitioner

communicates to the Minister for Large and Medium Scale

Industries to waive of interest amount, accept the balance amount

and hand over the plot. The communication also states that the

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Company is ready with demand drafts for the balance amount and

the photographs of the demand drafts were also enclosed but

payment was never made. Again on 14-11-2022 the same request

was placed before the Board after several notices being issued by

the Board.

5. On the petitioner not making payment for a long time,

close to 5 years after the allotment letter and as the petitioner was

still in due of Rs.17.5/- crores to the Board, the Board cancelled the

allotment in terms of its order dated 30-04-2022 on the ground

that the conditions stipulated in the letter of allotment had been

violated. After the cancellation of the allotment, since the plot

became open it was placed before the Committee and the

Committee approved the project of the 3rd respondent in terms of

its proceedings dated 26-07-2022 and allotment was made in

favour of the 3rd respondent. Pursuant to the allotment, possession

is also handed over to the 3rd respondent who, according to the

learned counsel appearing for the Board, has commenced

operations. After all these proceedings, the petitioner now prefers

the subject writ petition seeking quashment of termination letter

6

dated 30-04-2022 and allotment made in favour of the 3rd

respondent and seeks consequential direction to allot the plot t

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